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The company lowered its full-year adjusted earnings outlook to USD 3.62 per share on revenue of at least USD 7.34 billion, from its previous forecast of USD 3.69 per share in adjusted earnings on revenue of USD 7.53 billion.

Analysts on average were expecting full-year earnings of USD 3.45 per share on revenue of USD 7.54 billion, according to Thomson Reuters I/B/E/S.

"Due to a slower than anticipated acceleration in demand as we entered the second quarter, we are adopting a more conservative stance for the remainder of the year and revising our guidance to at least 20 percent revenue growth for 2012," chief executive Francisco D'Souza said in a statement.

The company sees second-quarter adjusted earnings of 87 cents per share on revenue of at least USD 1.79 billion.

Analysts had been expecting second-quarter earnings of 83 cents per share on revenue of USD 1.84 billion.

However, rival and India's top software services exporter Tata Consultancy Services Ltd said it expects to outperform the sector outlook, an indication it is poised to gain at the expense of rival Infosys.

For the first quarter, Cognizant's net income rose to USD 243.6 million, or 79 cents per share, from USD 208.3 million, or 67 cents per share, a year ago.

Excluding items, the company, which gets more than three-quarters of its total revenue from the US, earned 86 cents per share.

Revenue for the quarter rose 24.8% to USD 1.71 billion from USD 1.37 billion a year ago.

Analysts had expected earnings of 79 cents per share on revenue of USD 1.71 billion, according to Thomson Reuters I/B/E/S.

Shares of the Teaneck, New Jersey-based company have fallen 4% since it said it does not expect Europe to rebound in 2012 on February 8.